Japan to reduce Iran oil imports, supporting U.S.
Iran’s “nuclear development problem can’t be ignored by the world, so from that perspective we understand the U.S. actions,” Finance Minister Jun Azumi told reporters after meeting with U.S. Treasury Secretary Timothy Geithner, who was visiting Tokyo after two days in Beijing.
“We plan to start reducing this 10 percent share as soon as possible in an orderly manner,” he said.
Japan‘s quick agreement contrasts with China’s public silence on the matter during Geithner’s visit there. A diplomat who briefed reporters about an upcoming Middle East trip by Premier Wen Jiabao repeated earlier government statements rejecting sanctions as a way to resolve the dispute with Iran.
Geithner’s trip to Asia’s two largest economies is part of a global lobbying effort to win support for the sanctions aimed at halting what Western governments say is Iran’s effort to develop nuclear weapons. The sanctions, targeting the oil industry, would bar financial institutions from the U.S. market if they do business with Iran's central bank.
Iran has threatened to respond to sanctions by shutting the Strait of Hormuz, a transit route for a fifth of the world’s oil.
Geithner told reporters in Tokyo that the U.S. was working closely with “countries around the world to substantially increase the amount of pressure we bring on Iran” by cutting off “the central bank from the international financial system and to reduce the earnings Iran derives from its oil exports.” He characterized the effort as being “in the early stages.”
China has criticized the new sanctions, approved by President Barack Obama on New Year’s Eve, as improper and ineffective. Beijing supported U.N. sanctions on Iran’s nuclear program but says action should be multilateral.
“To place one country’s domestic law above international law and press others to obey is not reasonable,” Foreign Ministry spokesman Liu Weimin said Wednesday.
Experts said Tokyo’s move to reduce imports from Iran would likely have limited negative impact on Japan‘s economy as the country would probably be able to increase imports from other major oil producers such as Saudi Arabia and the United Arab Emirates.
But the sanctions — and accompanying geopolitical tension — could raise global oil prices and undermine the world economy.